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Wind and solar power can produce seven times more useful energy for cars, dollar for dollar, than gasoline with oil prices near current levels, according to BNP Paribas SA.

Oil will have fall to $9-$10 a barrel in the long-term in order for gasoline cars to remain competitive with clean-powered electric vehicles, and to $17-$19 a barrel for diesel, Mark Lewis, global head of sustainability research at BNP’s asset management unit, said in a research report. U.S. benchmark crude was trading at about $55 in New York on Monday.

What's your take on this figure? This would surely hasten the EV revolution and open up that huge market for utilities, but is it realistic? Are the figures believable

Thank Matt for the Post!

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Matt, Matthew Carr, like many energy spectators/renewables disciples, compares apples/oranges by comparing the per/kWh cost of either solar or wind alone to gasoline.

It assigns no value to dispatchability - the ability to start a car as needed, vs. being at the mercy of the wind or sun to charge your EV's battery. If Carr wants to compare he needs to include either the cost of battery storage, or the cost of the gas being burned for backup to wind and solar. Carr's gross simplification of the benefit side of the cost/benefit ratio skews the value comparison in favor of renewables.

What would you pay to rent a car for the weekend? What would you pay to rent a car for the weekend if you could only drive it when the sun was shining?

Bob, Matthew Car is the reporter who is relaying numbers from experts in sustainability research at BNP Paribas, France's largest bank that has done the data crunching and found that they no longer (as of 2 years ago) found investments in shale or oil sands worth it and instead are seeing the future returns in renewable energy projects: https://www.reuters.com/article/us-bnp-paribas-shale/bnp-paribas-stops-funding-shale-energy-firms-boosts-green-projects-idUSKBN1CG0E3

Matt, Carr only shows it's easier to make money building solar and wind farms, not whether it's in the best interests of customers - economically, or environmentally. If BNP Paribas consults with "experts in sustainability research", it's the sustainability of public naïveté. That has limits, too.

I have no idea why electricity customers would care about who's competing for dollars from investment banks. If wind and solar are so cheap, why is my electricity so much more expensive?

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